Adding a bathroom? Consider the ROI first

Key insights:

• A new bathroom addition can be a costly investment. Be sure that this project aligns with your homeownership or selling goals before beginning.
• If personal enjoyment and ease of living outweigh a monetary return on investment, a bathroom addition could be the right choice for you.
• It might be the right time to add a new bathroom to your space if you plan on making this your long-term home or hosting guests who prefer private space.

It’s fairly common for homeowners to wish they had more bathrooms. However, two new studies show that home sellers may not see the monetary or personal return on investment (ROI) that they were hoping for when they add a bathroom to their existing residence.

When asking whether a new bathroom addition is right for you, be clear about your goals. Homeowners who will sell in the next few years may want to hold off, while those who plan to stay put may be more satisfied with this renovation, as their return will be the time they spend in the space.

Still have questions about whether this project is right for you? Keep reading, and be sure to work with a REALTOR® for insights backed by expertise.

Why you might reconsider a bathroom addition in your home

The recently-released 2024 Cost vs. Value Report (www.costvsvalue.com) discusses the average return on investment for home renovations performed by a licensed contractor. The report shows that bathroom additions — whether upscale or midrange — have poor ROI, but are some of the most expensive renovation projects detailed in the report. In Minneapolis:

• An upscale bathroom addition costs an average of $113,165 with an ROI of 26.0%
• A midrange bathroom addition costs an average of $64,868 with an ROI of 26.6%

Meanwhile, the National Association of REALTORS®’ recently published 2025 Remodeling Impact Report doesn’t even list a bathroom addition as one of its 12 remodeling projects. The lack of inclusion in this report, which contains insights on the home upgrades that bring homeowners the most satisfaction, seems to indicate that a bathroom addition doesn’t recoup the financial or emotional cost of the work.

When is it worth it for homeowners and sellers to complete a bathroom addition?

Although the return on investment and satisfaction of the completed project aren’t noticeably high, there are some instances when it could be worth it to add a bathroom to your home.

Renovating to include an owner’s suite. If an owner’s suite addition could make your home more competitive on the market, or if you hope to enjoy the owner’s suite yourself, this renovation could be of benefit.

If you know you plan to stay in the home for years to come. If you’ll be staying put for the better part of the foreseeable future, and you’re feeling the pain of too few bathrooms, you might consider a new bathroom addition. In this case, the return on the addition will not be monetary, but will be your use and enjoyment of the space.

If you expect to have frequent guests or long-term visitors. If you often find yourself preparing your home for guests or have long-term visitors who prefer privacy, a new bathroom addition could be the ideal solution.

Do you need a new bathroom or a better one?

Adding a new bathroom doesn’t have a high ROI or any notable “joy score,” but bathroom renovations are another story. The Remodeling Report calculated a “Joy Score” of a bathroom remodel as a 9.8 on a scale of one to 10. It’s also ranked as one of the top five projects that REALTORS recommend sellers complete before buying.

These are promising insights, but a bathroom remodel still ranks as one of the last on the list of projects that recover cost in the NAR report, as well as the Cost vs. Value report.

Is moving forward with a bathroom addition the right choice for you?

While there are many home improvements with a high ROI, a new bathroom addition may not be worth it for those who are hoping to sell in the next few years. For those who have guest needs or would themselves make use of a bathroom over the course of many years, an additional bathroom may be a smart choice.

To help you determine the right plan for your house and your future, talk to Edina Realty or your agent before making big renovation or selling plans.